Gucci was founded in 1921 by Guccio Gucci. In 1938, Gucci expanded and a boutique was opened in Rome. Guccio was responsible for designing many of the company's products. In 1947, Gucci introduced the bamboo handle handbag, which is still a company mainstay. During the 1950s, Gucci also developed the trademark striped webbing, which was derived from the saddle girth, and the suede moccasin with a metal horsebit.
His wife Aida Calvelli had a large family, though only the sons—Vasco, Aldo, Ugo, and Rodolfo—would play a role in leading the company.
Gucci remained one of the premier luxury goods establishments in the world until the late 1970s, when a series of disastrous business decisions and family quarrels brought the company to the verge of bankruptcy.
Rodolfo's death in 1983 caused a major shakeup in the company when he left his 50% stake in Gucci to his son, Maurizio Gucci. Maurizio allied with Aldo's son Paolo to gain control of the Board of Directors and established the Gucci Licensing division in the Netherlands for this purpose. Maurizio sought to bury the fighting that had torn the company and his family apart and turned to talent outside of the company for Gucci's future.
November 1997 also proved to be a successful year as Gucci acquired a watch licensee, Severin-Montres, and renamed it Gucci Timepieces.